As Introduced 1
122nd General Assembly 4
Regular Session S. B. No. 70 5
1997-1998 6
SENATORS DIX-KEARNS 8
10
A B I L L
To amend section 3901.21 of the Revised Code to make 11
it an unfair practice for any insurer to cancel 12
or to refuse to issue or renew any life or health 13
insurance policy or contract because the
applicant or insured is a victim of domestic 15
violence, and to prohibit insurers from taking
other adverse actions based on the applicant's or 17
insured's status as a victim of domestic
violence.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 19
Section 1. That section 3901.21 of the Revised Code be 21
amended to read as follows: 22
Sec. 3901.21. The following are hereby defined as unfair 31
and deceptive acts or practices in the business of insurance: 32
(A) Making, issuing, circulating, or causing or permitting 34
to be made, issued, or circulated, or preparing with intent to so 35
use, any estimate, illustration, circular, or statement 36
misrepresenting the terms of any policy issued or to be issued or 37
the benefits or advantages promised thereby or the dividends or 38
share of the surplus to be received thereon, or making any false 39
or misleading statements as to the dividends or share of surplus 40
previously paid on similar policies, or making any misleading 41
representation or any misrepresentation as to the financial 42
condition of any insurer as shown by the last preceding verified 43
statement made by it to the insurance department of this state, 44
or as to the legal reserve system upon which any life insurer 45
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operates, or using any name or title of any policy or class of 46
policies misrepresenting the true nature thereof, or making any 47
misrepresentation or incomplete comparison to any person for the 48
purpose of inducing or tending to induce such person to purchase, 49
amend, lapse, forfeit, change, or surrender insurance. 50
Any written statement concerning the premiums for a policy 52
which refers to the net cost after credit for an assumed 53
dividend, without an accurate written statement of the gross 54
premiums, cash values, and dividends based on the insurer's 55
current dividend scale, which are used to compute the net cost 56
for such policy, and a prominent warning that the rate of 57
dividend is not guaranteed, is a misrepresentation for the 58
purposes of this division. 59
(B) Making, publishing, disseminating, circulating, or 61
placing before the public or causing, directly or indirectly, to 62
be made, published, disseminated, circulated, or placed before 63
the public, in a newspaper, magazine, or other publication, or in 64
the form of a notice, circular, pamphlet, letter, or poster, or 65
over any radio station, or in any other way, or preparing with 66
intent to so use, an advertisement, announcement, or statement 67
containing any assertion, representation, or statement, with 68
respect to the business of insurance or with respect to any 69
person in the conduct of his THE PERSON'S insurance business, 70
which is untrue, deceptive, or misleading. 72
(C) Making, publishing, disseminating, or circulating, 74
directly or indirectly, or aiding, abetting, or encouraging the 75
making, publishing, disseminating, or circulating, or preparing 76
with intent to so use, any statement, pamphlet, circular, 77
article, or literature, which is false as to the financial 78
condition of an insurer and which is calculated to injure any 79
person engaged in the business of insurance. 80
(D) Filing with any supervisory or other public official, 82
or making, publishing, disseminating, circulating, or delivering 83
to any person, or placing before the public, or causing directly 84
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or indirectly to be made, published, disseminated, circulated, 85
delivered to any person, or placed before the public, any false 86
statement of financial condition of an insurer. 87
Making any false entry in any book, report, or statement of 89
any insurer with intent to deceive any agent or examiner lawfully 90
appointed to examine into its condition or into any of its 91
affairs, or any public official to whom such insurer is required 92
by law to report, or who has authority by law to examine into its 93
condition or into any of its affairs, or, with like intent, 94
willfully omitting to make a true entry of any material fact 95
pertaining to the business of such insurer in any book, report, 96
or statement of such insurer, or mutilating, destroying, 97
suppressing, withholding, or concealing any of its records. 98
(E) Issuing or delivering or permitting agents, officers, 100
or employees to issue or deliver agency company stock or other 101
capital stock or benefit certificates or shares in any common-law 102
corporation or securities or any special or advisory board 103
contracts or other contracts of any kind promising returns and 104
profits as an inducement to insurance. 105
(F) Making or permitting any unfair discrimination among 107
individuals of the same class and equal expectation of life in 108
the rates charged for any contract of life insurance or of life 109
annuity or in the dividends or other benefits payable thereon, or 110
in any other of the terms and conditions of such contract. 111
(G)(1) Except as otherwise expressly provided by law, 113
knowingly permitting or offering to make or making any contract 114
of life insurance, life annuity or accident and health insurance, 115
or agreement as to such contract other than as plainly expressed 116
in the contract issued thereon, or paying or allowing, or giving 117
or offering to pay, allow, or give, directly or indirectly, as 118
inducement to such insurance, or annuity, any rebate of premiums 119
payable on the contract, or any special favor or advantage in the 120
dividends or other benefits thereon, or any valuable 121
consideration or inducement whatever not specified in the 122
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contract; or giving, or selling, or purchasing, or offering to 123
give, sell, or purchase, as inducement to such insurance or 124
annuity or in connection therewith, any stocks, bonds, or other 125
securities, or other obligations of any insurance company or 126
other corporation, association, or partnership, or any dividends 127
or profits accrued thereon, or anything of value whatsoever not 128
specified in the contract. 129
(2) Nothing in division (F) or division (G)(1) of this 131
section shall be construed as prohibiting any of the following 132
practices: (a) in the case of any contract of life insurance or 133
life annuity, paying bonuses to policyholders or otherwise 134
abating their premiums in whole or in part out of surplus 135
accumulated from nonparticipating insurance, provided that any 136
such bonuses or abatement of premiums shall be fair and equitable 137
to policyholders and for the best interests of the company and 138
its policyholders; (b) in the case of life insurance policies 139
issued on the industrial debit plan, making allowance to 140
policyholders who have continuously for a specified period made 141
premium payments directly to an office of the insurer in an 142
amount which fairly represents the saving in collection expenses; 143
(c) readjustment of the rate of premium for a group insurance 144
policy based on the loss or expense experience thereunder, at the 145
end of the first or any subsequent policy year of insurance 146
thereunder, which may be made retroactive only for such policy 147
year. 148
(H) Making, issuing, circulating, or causing or permitting 150
to be made, issued, or circulated, or preparing with intent to so 151
use, any statement to the effect that a policy of life insurance 152
is, is the equivalent of, or represents shares of capital stock 153
or any rights or options to subscribe for or otherwise acquire 154
any such shares in the life insurance company issuing that policy 155
or any other company. 156
(I) Making, issuing, circulating, or causing or permitting 158
to be made, issued or circulated, or preparing with intent to so 159
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issue, any statement to the effect that payments to a 160
policyholder of the principal amounts of a pure endowment are 161
other than payments of a specific benefit for which specific 162
premiums have been paid. 163
(J) Making, issuing, circulating, or causing or permitting 165
to be made, issued, or circulated, or preparing with intent to so 166
use, any statement to the effect that any insurance company was 167
required to change a policy form or related material to comply 168
with Title XXXIX of the Revised Code or any regulation of the 169
superintendent of insurance, for the purpose of inducing or 170
intending to induce any policyholder or prospective policyholder 171
to purchase, amend, lapse, forfeit, change, or surrender 172
insurance. 173
(K) Aiding or abetting another to violate this section. 175
(L) Refusing to issue any policy of insurance, or 177
canceling or declining to renew such policy because of the sex or 178
marital status of the applicant, prospective insured, insured, or 179
policyholder. 180
(M) Making or permitting any unfair discrimination between 182
individuals of the same class and of essentially the same hazard 183
in the amount of premium, policy fees, or rates charged for any 184
policy or contract of insurance, other than life insurance, or in 185
the benefits payable thereunder, or in underwriting standards and 186
practices or eligibility requirements, or in any of the terms or 187
conditions of such contract, or in any other manner whatever. 188
(N) Refusing to make available disability income insurance 190
solely because the applicant's principal occupation is that of 191
managing a household. 192
(O) Refusing, when offering maternity benefits under any 194
individual or group sickness and accident insurance policy, to 195
make maternity benefits available to the policyholder for the 196
individual or individuals to be covered under any comparable 197
policy to be issued for delivery in this state, including family 198
members if the policy otherwise provides coverage for family 199
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members. Nothing in this division shall be construed to prohibit 200
an insurer from imposing a reasonable waiting period for such 201
benefits, but in no event shall such waiting period exceed two 202
hundred seventy days. 203
(P) Using, or permitting to be used, a pattern settlement 205
as the basis of any offer of settlement. As used in this 206
division, "pattern settlement" means a method by which liability 207
is routinely imputed to a claimant without an investigation of 208
the particular occurrence upon which the claim is based and by 209
using a predetermined formula for the assignment of liability 210
arising out of occurrences of a similar nature. Nothing in this 211
division shall be construed to prohibit an insurer from 212
determining a claimant's liability by applying formulas or 213
guidelines to the facts and circumstances disclosed by the 214
insurer's investigation of the particular occurrence upon which a 215
claim is based. 216
(Q) Refusing to insure, or refusing to continue to insure, 218
or limiting the amount, extent, or kind of life or sickness and 219
accident insurance or annuity coverage available to an 220
individual, or charging an individual a different rate for the 221
same coverage solely because of blindness or partial blindness. 222
With respect to all other conditions, including the underlying 223
cause of blindness or partial blindness, persons who are blind or 224
partially blind shall be subject to the same standards of sound 225
actuarial principles or actual or reasonably anticipated 226
actuarial experience as are sighted persons. Refusal to insure 227
includes, but is not limited to, denial by an insurer of 228
disability insurance coverage on the grounds that the policy 229
defines "disability" as being presumed in the event that the 230
eyesight of the insured is lost. However, an insurer may exclude 231
from coverage disabilities consisting solely of blindness or 232
partial blindness when such conditions existed at the time the 233
policy was issued. To the extent that the provisions of this 234
division may appear to conflict with any provision of section 235
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3999.16 of the Revised Code, this division applies. 236
(R)(1) Directly or indirectly offering to sell, selling, 238
or delivering, issuing for delivery, renewing, or using or 239
otherwise marketing any policy of insurance or insurance product 240
in connection with or in any way related to the grant of a 241
student loan guaranteed in whole or in part by an agency or 242
commission of this state or the United States, except insurance 243
that is required under federal or state law as a condition for 244
obtaining such a loan and the premium for which is included in 245
the fees and charges applicable to the loan; or, in the case of 246
an insurer or insurance agent, knowingly permitting any lender 247
making such loans to engage in such acts or practices in 248
connection with the insurer's or agent's insurance business. 249
(2) Except in the case of a violation of division (G) of 251
this section, division (R)(1) of this section does not apply to 252
either of the following: 253
(a) Acts or practices of an insurer, its agents, 255
representatives, or employees in connection with the grant of a 256
guaranteed student loan to its insured or the insured's spouse or 257
dependent children where such acts or practices take place more 258
than ninety days after the effective date of the insurance; 259
(b) Acts or practices of an insurer, its agents, 261
representatives, or employees in connection with the 262
solicitation, processing, or issuance of an insurance policy or 263
product covering the student loan borrower or his THE BORROWER'S 264
spouse or dependent children, where such acts or practices take 266
place more than one hundred eighty days after the date on which 267
the borrower is notified that the student loan was approved. 268
(S) Denying coverage, under any health insurance or health 270
care policy, contract, or plan providing family coverage, to any 271
natural or adopted child of the named insured or subscriber 272
solely on the basis that the child does not reside in the 273
household of the named insured or subscriber. 274
(T)(1) Using any underwriting standard or engaging in any 276
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other act or practice that, directly or indirectly, due solely to 277
the actual or expected health condition of one or more 278
individuals, does either of the following:
(a) Terminates or fails to renew an existing individual 280
policy, contract, or plan of health benefits, or a health benefit 281
plan issued to a small employer as those terms are defined in 282
section 3924.01 of the Revised Code, for which an individual 283
would otherwise be eligible;
(b) With respect to a health benefit plan issued to a 285
small employer, as those terms are defined in section 3924.01 of 286
the Revised Code, excludes or causes the exclusion of an 287
individual from coverage under an existing employer-provided 288
policy, contract, or plan of health benefits, except that an 289
insurer may exclude, on the basis of health status, a late
enrollee as defined in section 3924.01 of the Revised Code. 290
(2) The superintendent of insurance may adopt rules in 292
accordance with Chapter 119. of the Revised Code for purposes of 293
implementing division (T)(1) of this section. 294
(U) With respect to a health benefit plan issued to a 296
small employer, as those terms are defined in section 3924.01 of 297
the Revised Code, negligently or willfully placing coverage for 298
adverse risks with a certain carrier, as defined in section 299
3924.01 of the Revised Code.
(V) Using any program, scheme, device, or other unfair act 301
or practice that, directly or indirectly, causes or results in 302
the placing of coverage for adverse risks with another carrier, 303
as defined in section 3924.01 of the Revised Code. 304
(W) Failing to comply with section 3923.23, 3923.231, 306
3923.232, 3923.233, or 3923.234 of the Revised Code by engaging 307
in any unfair, discriminatory reimbursement practice. 308
(X) Intentionally establishing an unfair premium for, or 310
misrepresenting the cost of, any insurance policy financed under 311
a premium finance agreement of an insurance premium finance 312
company. 313
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(Y)(1)(a) LIMITING COVERAGE UNDER, REFUSING TO ISSUE, 315
CANCELING, OR REFUSING TO RENEW, ANY INDIVIDUAL POLICY OR 316
CONTRACT OF LIFE OR HEALTH INSURANCE, FOR THE REASON THAT THE 317
INSURED OR APPLICANT FOR INSURANCE IS OR HAS BEEN A VICTIM OF 319
DOMESTIC VIOLENCE;
(b) ADDING A SURCHARGE OR RATING FACTOR TO A PREMIUM OF 321
ANY INDIVIDUAL POLICY OR CONTRACT OF LIFE OR HEALTH INSURANCE FOR 322
THE REASON THAT THE INSURED OR APPLICANT FOR INSURANCE IS OR HAS 323
BEEN A VICTIM OF DOMESTIC VIOLENCE; 324
(c) DENYING COVERAGE UNDER, OR LIMITING COVERAGE UNDER, 326
ANY POLICY OR CONTRACT OF LIFE OR HEALTH INSURANCE, FOR THE 328
REASON THAT A CLAIM UNDER THE POLICY OR CONTRACT ARISES FROM AN 329
INCIDENT OF DOMESTIC VIOLENCE;
(d) INQUIRING, DIRECTLY OR INDIRECTLY, OF AN INSURED 331
UNDER, OR OF AN APPLICANT FOR, A POLICY OR CONTRACT OF LIFE OR 332
HEALTH INSURANCE, AS TO WHETHER THE INSURED OR APPLICANT IS OR 333
HAS BEEN A VICTIM OF DOMESTIC VIOLENCE, OR INQUIRING AS TO 334
WHETHER THE INSURED OR APPLICANT HAS SOUGHT SHELTER OR PROTECTION 335
FROM DOMESTIC VIOLENCE OR HAS SOUGHT MEDICAL OR PSYCHOLOGICAL
TREATMENT AS A VICTIM OF DOMESTIC VIOLENCE. 336
(2) NOTHING IN DIVISION (Y)(1) OF THIS SECTION SHALL BE 338
CONSTRUED TO PROHIBIT AN INSURER FROM INQUIRING AS TO, OR FROM 339
UNDERWRITING OR RATING A RISK ON THE BASIS OF, A PERSON'S 341
PHYSICAL OR MENTAL CONDITION, EVEN IF THE CONDITION HAS BEEN 343
CAUSED BY DOMESTIC VIOLENCE, PROVIDED THAT ALL OF THE FOLLOWING
APPLY: 344
(a) THE INSURER ROUTINELY CONSIDERS THE CONDITION IN 346
UNDERWRITING OR IN RATING RISKS, AND DOES SO IN THE SAME MANNER 347
FOR A VICTIM OF DOMESTIC VIOLENCE AS FOR AN INSURED OR APPLICANT 348
WHO IS NOT A VICTIM OF DOMESTIC VIOLENCE; 349
(b) THE INSURER DOES NOT REFUSE TO ISSUE, CANCEL, OR 351
REFUSE TO RENEW ANY POLICY OR CONTRACT OF LIFE OR HEALTH 352
INSURANCE SOLELY ON THE BASIS OF THE CONDITION, EXCEPT WHERE THE 353
REFUSAL TO ISSUE, THE CANCELLATION, OR THE REFUSAL TO RENEW IS 354
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BASED ON SOUND ACTUARIAL PRINCIPLES OR IS RELATED TO ACTUAL OR
REASONABLY ANTICIPATED EXPERIENCE; 355
(c) THE INSURER DOES NOT CONSIDER A PERSON'S STATUS AS 357
BEING OR AS HAVING BEEN A VICTIM OF DOMESTIC VIOLENCE, IN ITSELF, 358
TO BE A PHYSICAL OR MENTAL CONDITION; 359
(d) THE UNDERWRITING OR RATING OF A RISK ON THE BASIS OF 361
THE CONDITION IS NOT USED TO EVADE THE INTENT OF DIVISION (Y)(1) 363
OF THIS SECTION, OR OF ANY OTHER PROVISION OF THE REVISED CODE. 365
(3) NOTHING IN DIVISION (Y)(1) OF THIS SECTION SHALL BE 367
CONSTRUED TO PROHIBIT AN INSURER FROM REFUSING TO ISSUE A POLICY 368
OR CONTRACT OF LIFE INSURANCE INSURING THE LIFE OF A PERSON WHO 369
IS OR HAS BEEN A VICTIM OF DOMESTIC VIOLENCE IF THE PERSON WHO 370
COMMITTED THE ACT OF DOMESTIC VIOLENCE IS THE APPLICANT FOR THE 371
INSURANCE OR WOULD BE THE OWNER OF THE INSURANCE POLICY OR 372
CONTRACT.
(4)(a) AS USED IN DIVISION (Y) OF THIS SECTION, "DOMESTIC 374
VIOLENCE" MEANS ANY OF THE FOLLOWING ACTS: 375
(i) KNOWINGLY CAUSING OR ATTEMPTING TO CAUSE PHYSICAL HARM 377
TO A FAMILY OR HOUSEHOLD MEMBER; 379
(ii) RECKLESSLY CAUSING SERIOUS PHYSICAL HARM TO A FAMILY 381
OR HOUSEHOLD MEMBER; 383
(iii) KNOWINGLY CAUSING, BY THREAT OF FORCE, A FAMILY OR 385
HOUSEHOLD MEMBER TO BELIEVE THAT THE PERSON WILL CAUSE IMMINENT 386
PHYSICAL HARM TO THE FAMILY OR HOUSEHOLD MEMBER. 387
(b) FOR THE PURPOSE OF DIVISION (Y)(4)(a) OF THIS SECTION, 390
"FAMILY OR HOUSEHOLD MEMBER" HAS THE SAME MEANING AS IN SECTION 391
2919.25 OF THE REVISED CODE. 392
(c) NOTHING IN DIVISION (Y)(4)(a) OR (b) OF THIS SECTION 395
SHALL BE CONSTRUED TO REQUIRE, AS A CONDITION TO THE APPLICATION 396
OF DIVISION (Y) OF THIS SECTION, THAT THE ACT DESCRIBED IN 398
DIVISION (Y)(4)(a) BE THE BASIS OF A CRIMINAL PROSECUTION. 399
With respect to private passenger automobile insurance, no 401
insurer shall charge different premium rates to persons residing 402
within the limits of any municipal corporation based solely on 403
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the location of the residence of the insured within those limits. 404
The enumeration in sections 3901.19 to 3901.26 of the 406
Revised Code of specific unfair or deceptive acts or practices in 407
the business of insurance is not exclusive or restrictive or 408
intended to limit the powers of the superintendent of insurance 409
to adopt rules to implement this section, or to take action under 410
other sections of the Revised Code. 411
This section does not prohibit the sale of shares of any 413
investment company registered under the "Investment Company Act 414
of 1940," 54 Stat. 789, 15 U.S.C.A. 80a-1, as amended, or any 415
policies, annuities, or other contracts described in section 416
3907.15 of the Revised Code. 417
As used in this section, "estimate," "statement," 419
"representation," "misrepresentation," "advertisement," or 420
"announcement" includes oral or written occurrences. 421
Section 2. That existing section 3901.21 of the Revised 423
Code is hereby repealed. 424